Should I Float? Should I Lock? - Daily Update for Thursday, October 22, 2009

Here are the daily thoughts on interest rate floating or locking if you are asked by your clients. 

As always - consult your favorite mortgage professional who will be able to offer the best advice for YOUR unique situation. 

Jobless Claims took a "surprising" turn upwards for last week.  Normally this would result in improved bond pricing.  The reason it's not is the announcement due out this morning on how much more debt is to be auctioned off.  Some are guessing in the range of $115 Billion.  This is putting the kibosh on any more rally attempts. 

Look for rates this morning to be approximately the same from where they closed yesterday when rate sheets are released by Amerisave Mortgage Corporation.

Technically speaking - the FNMA 4.5% 30 year bond stayed above the all important 200 day moving average - though the 200 day is being tested again this morning. The bond is near oversold status.

I am recommending to

   LOCK your best mortgage rate.  I 

To learn why one should Float or Lock -

                          Check out Should I float? Should I lock? &; Reasons to Float or Lock

To obtain rates and fees with a $500 guarantee - come visit